EDELTEQ HOLDINGS BERHAD

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Open to apply: 09 May 2023
Close to apply: 17 May 2023
Balloting: 19 May 2023
Listing date: 30 May 2023

Share Capital
Market cap: RM127.808 mil
Total Shares: 532.535 mil shares

Industry CARG (2017-2021)
Semiconductor sales, Global, 2017-2022(e): 7.07%
IC Assembly and Test segment, Global, 2017-2022(e): 7.17%
Design and assembly of IC BIBs and supply of PCBs (PAT%)
Edelteq: 25.42%
KESP Sdn Bhd: losses (-27.16%)
Trio-Tech (M) Sdn Bhd: -3.31%
EDA Malaysia Industries Sdn Bhd: 2.27%
JAC Engineering Sdn Bhd: 0.74%
Design, development and assembly of ATE and factory automation (PAT%)
Vitrox: 26.2% (PE40)
Penta: 23.5% (PE40)
Greatech: 23.42% (PE41)
Mi: 16.91% (PE19)
QES: 11.39% (PE17)
Aemulues:17.06% (PE69)
Vis: 32.11% (PE15)
MMSV: 18.54% (14)

Business (FYE 2022)
1. Design and assembly of IC (integrated circuit) burn-in boards and supply of PCBs (ETSB and ETMSB): 52.2%
2. Supply and refurbishment of IC assembly and test consumables (ETSB): 19.46%
3. Design, development and assembly of ATE and factory automation (EVSB): 24.71%
4. Trading of operating supplies, spare parts and tools for IC assembly and testing(CESB and DTSB): 3.63%

Revenue by Geo
Malaysia: 77.61%
Overseas: 22.39%

Fundamental
1.Market: Ace Market
2.Price: RM0.24
3.P/E: 23.53 @ RM0.0102
4.ROE(Pro Forma III): 13.28%
5.ROE: 28.52%(FYE2022), 59.56%(FYE2021), 45.78%(FYE2020), 9.65%(FYE2019)
6.Net asset: RM0.08
7.Total debt to current asset after IPO: 0.26 (Debt: 7.167mil, Non-Current Asset: 20.899mil, Current asset: 27.228mil)
8.Dividend policy: 20% PAT dividend policy.
9. Shariah status: Yes

Past Financial Performance (Revenue, Earning Per shares, PAT%)
2022 (FYE 31Dec): RM24.360 mil (Eps: 0.0102),PAT: 22.33%
2021 (FYE 31Dec): RM23.950 mil (Eps: 0.0169),PAT: 37.62%
2020 (FYE 31Dec): RM16.685 mil (Eps: 0.0075),PAT: 23.88%
2019 (FYE 31Dec): RM12.374 mil (Eps: 0.0010),PAT: 4.46%

Operating cashflow vs PBT
2022: 57.13%
2021: 54.98%
2020: 86.02%
2019: 52.02%

Major customer (2023)
1. Infineon Technologies (Malaysia) Sdn Bhd: 37.28%
2. Customer A: 18.34% 
3. Comapany X: 11.07%
4. Customer D: 9.13%
5. Skyworks Global Pte Ltd: 6.61%
***total 82.43%

Major Sharesholders
1. Chin Yong Keong: 44.05%
2. Khong Chee Seong: 20.08%
3. Chin Yuen Fong: 8.72%

Directors & Key Management Remuneration for FYE2023 (from Revenue & other income 2022)
Total director remuneration: RM1.297mil
key management remuneration: RM1.40mil - RM1.65mil
total (max): RM2.947mil or 25.4%

Use of funds
1. Construction of Proposed Batu Kawan Factory: 15.33%
2. Repayment of bank borrowings (Proposed Batu Kawan Factory): 42.71%
3. R&D: 12.90%
4. Working capital: 14.06%
5. Listing Expenses: 15.00%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)
Overall, not a discount IPO. However the company is have potential for growing in futures. 

*Valuation is only personal opinion & view. Perception & forecast will change if any new quarter
result release. Reader take their own risk & should do own homework to follow up every quarter
result to adjust forecast of fundamental value of the company.